The Phoenix industrial market’s momentum continued into the third quarter with 2,156,848 sq. ft. of positive net absorption, its 42nd consecutive quarter of gains.
Phoenix industrial vacancy was 6.1%% in Q3 2020, an increase of 20 bps quarter-over-quarter.
Currently, 11,824,910 sq. ft. of industrial space is underway across the Phoenix market. At the end of the quarter, 54.2% of the space under construction was committed to by tenants currently located in the market and new entries to Phoenix.
Construction is heavily concentrated in the Southwest Valley due to the availability and affordability of land, where 11,090,636 sq. ft. of product is underway.